Kazakhstan’s National Atomic Company keeps its 2020 guidance unchanged despite COVID-19

Business Materials 2 November 2020 13:06 (UTC +04:00)
Kazakhstan’s National Atomic Company keeps its 2020 guidance unchanged despite COVID-19

BAKU, Azerbaijan, Nov. 2

By Nargiz Sadikhova - Trend:

Uranium production by Kazakhstan’s Kazatomprom National Atomic Company is expected to amount to 19,000-19,500 tons in 2020, Trend reports with reference to the company's report.

The company said that the 2020 guidance remains unchanged at this time.

“Revenue, C1 cash cost (attributable basis) and All-in Sustaining cash cost (attributable C1 + capital cost) may vary from the ranges shown, to the extent that the KZT-to-USD exchange rate and uranium spot price differ from the assumptions shown in the footnotes,” the company noted.

The company said that it expects its 2020 sales volume will be 15,500-16,500 tons 2020, whereas the revenue will amount to 580-600 billion tenge ($1.3-$1.4 billion).

In turn, the company’s total capital expenditures are expected to amount to 65-70 billion tenge ($156-$180 million).

“The Company continues to target an ongoing inventory level of approximately six to seven months of annual attributable production. However, inventory levels are expected to fall below that level in 2020 and 2021, with no opportunity to catch up with the recent production losses in these future periods. As such, the Company will continue to monitor market conditions for opportunities to optimize its inventory levels, and it has purchased small volumes in the spot market during the second and third quarters,” the company said.

Kazatomprom is the world's largest producer of uranium, with the company’s attributable production representing approximately 23 percent of global primary uranium production in 2018.

The company benefits from the largest reserve base in the industry and operates, through its subsidiaries, JVs, and Associates, 26 deposits grouped into 13 mining assets. All of the company’s mining operations are located in Kazakhstan.


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